Justin Percy
Jul 26, 2018 · 4 min read

The Federal Reserve has no intrinsic value (Part 1)

As I sit here, on my 34th birthday, looking upon the world in an almost astonished manner… I reflect on recent statements by what some would consider a trusted source for wisdom of economic prosperity.

Utterly disgusted; I read recent remarks from Federal Reserve Chairman Jerome Powell not only regarding the new financial industry known as “crypto”, but more importantly; His blatant dishonesty or complete ignorance regarding the industries his own “committee” is apparently in control of monetary policy on a day to day basis.

“Cryptocurrencies are great if you’re trying to hide money or if you’re trying to launder money…it doesn’t really have any intrinsic value so I think there’re investor or consumer protection issues as well.” — Jerome Powell

Excuse me Mr. Powell… Do I need to remind you the true meaning for intrinsic value? In the context of consumer protection; What did the Federal Reserve do to protect investors in the 2008 market crash? What did the Federal Reserve do to protect consumers when the massive inflation of not only the money supply, stock markets, pension funds, and commodities of most affected countries… destroyed their entire live saving almost overnight?

The Federal Reserve and partner banks not only lied about the true cause of the market crash; As later discovered to be their own incompetence in regulating their own industries; Blindly allowing unbelievable corruption to take place for over a decade! To cover their mess up, what did they do?

Injected trillions of dollars of money from nothing called “liquidity” to artificially manipulate price confidence to project the image that they’re “fixing the problem”. THIS created inflation in global markets. Today, we’re beginning to pay for the secondary effects of something that took place 10 years ago! Mr. Powell how much more time do you need to fix the situation? Why has almost all of the G8 countries suffered recent declines in their currencies and national wealth? Where did all of this money go? Why are there more questions than answers? The list goes on and on…

“If you think about what currencies do, they’re supposed to be a means of payment and a store of value, basically. And cryptocurrencies…they’re not really used very much in payment. Typically people sell their cryptocurrencies and then pay in dollars. In terms of a store of value, you know, look at the volatility and…it’s just not there.” — Jerome Powell

Alright, if you’re correct Mr. Powell, I will assume most people sell all their crypto-currencies and never actually buy anything with them aside for United States Dollars or the national currency of their choice. None of them actually hold it for long-term. What would motivate them to do that? Lack of merchants accepting it… Would be an obvious reason. Recently, many large international corporations, individuals, and even governments stated they WILL accept some form of cryptocurrency as payment for their goods and services so that must not be the issue here.

Fiat currencies are far better at storing value than cryptocurrencies… Right? But what about the facts when you actually look at the true inflationary numbers for Hungary, Greece, Venezuela, Hungary, Zimbabwe, Yugoslavia, Weimar Germany, China, Peru, France, Bolivia, Nicaragua, etc… How did the Federal Reserve protect investors and consumers then?

Why did those currencies suddenly switch from a great way to “pay and save” to using their currency as good way to start a bonfire because after all… It was just paper. Unlimited paper; with no ability to be traced, controlled or audited properly. Allowing for corruption behind regulation, market manipulations for political gain… More importantly: a broken system to wipe out nations as though they never existed. Please, explain to me how those market conditions are non-volatile and I should somehow believe that your committee of “economists” are effectively protecting my countries financial future too…

To be fair in this argument; I will attempt to explain how I feel cryptocurrencies could be used for consumer and investor protection. A controlled system allowing for governments or individuals to audit and discover corruption long before it creates volatile markets. More importantly, why people who own cryptocurrencies; DO consider them a store of value and have already proven their use as effective for trusted, cheap, and instant methods of micro or macro payments worldwide. A digital “paper trail” of all transactions is publicly audit-able at all times, true currency inflation data can be viewed in the past, present or future. Regulated by consensus among all market participants; Not a small “committee” of disconnected economists with a history of incompetence, corruption, and lack of remorse for their own mistakes. I am truly sorry sir, but that’s reality!

TO BE CONTINUED…

Reference:
https://news.bitcoin.com/fed-chair-crypto-no-intrinsic-value-store-of-value-money-laundering/

Justin Percy

Written by

President, Biznatch Enterprises & Founder, Profit Hunters Coin http://profithunterscoin.com